letter of intent

noun

Typically used interchangeably with term sheet. A document that outlines the specifics of a transaction that two parties are planning to conduct. Terms sheets outline major terms of the transaction, timing of the process, and conditions under which either party could back out of the deal. A letter of intent is usually not a legally binding contract.

Example: Google sent my startup a letter of intent, so we know what to expect if the deal goes through.

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